THE Davao City Council approved last week the 50 percent tax increase on sand and gravel and other quarry resources.
"There is hereby imposed a tax of P30 per cubic meter based on materials actually extracted on ordinary stones, sand, gravel, earth, and other quarry resources, such as but not limited to marl, marble, granite, volcanic cinders, basalt, tuff, and rock phosphate, extracted from public lands or from the beds of seas, lakes, rivers, streams creeks, and other public waters within the territorial jurisdiction of the city," the amended ordinance approved by the Davao City Council read.
Last October 10, the council approved the ordinance amending the 2005 Revenue Code of the City of Davao also known as the 2017 Revenue code of the city of Davao.
The ordinance amended the P15 per cubic meter tax on sand and gravel and other quarry resources stipulated on the 2005 revenue code.
The approved ordinance also mandated that private lands shall not be quarried for business purposes without permit from the city mayor and those who shall quarry hall be taxed as retailer.
Based on the amended ordinance, "in case the concessionaires engaged in the retail of ordinary stones, sand, gravel and other quarry resources at any place other than quarry area, or delivers the same to the middlemen and/ or end-user, the same shall be taxed not only as concessionaire but also a retailer, however, the amount of the said quarry resources at cost from the quarry shall be deducted to determine the gross sales as a retailer."
The ordinance also mandated that every person or entity who shall establish, operate and maintain quarry yards within Davao City shall first security special permit form city mayor and pay corresponding fees annually.
Those who maintain quarry yards are required to pay an annual fee of P1,500 for 500 square meters or less, P1,750 for 500 square meters but not more than 1,000 square meters, P2,000 for over 1,000 square meters but not more than 1,500 square meters, P2,500 for over 1,500 square meters but not more than 2,500 square meters, and P3,500 for those who have over P2,000 square meters.
The newly approved ordinance states that the city treasurer when it deems necessary may post an inspector in the quarry area to determine the volume of quarry resources extracted. And no quarrying shall be done upon due notice to the concessionaire concerned without the presence of inspector.
Aside from that, Section 45 of the Ordinance also states that every person who shall extract sand and gravel and other quarry resources shall secure a permit from the city mayor and pay a special permit fee of P200 pursuant to the procedural guidelines embodied in the Mines Administrative Order No. MRD- 27, series of 1980.
As to exemptions, any government agency that has been granted a gratuitous permit to extract above mentioned materials for the purpose of government projects within the city shall be exempt from the payment of tax prescribed.
"The tax shall be due every month upon issuance of Quarry permit based on materials actually extracted or applied volume of extraction of quarry materials divided by 12 months whichever is higher," the Section 47 of the ordinance read.